International Plaza in Tanjong Pagar relaunched for collective sale at $2.7b

The tender will close on April 29 at 3 pm. PHOTO: ST FILE

SINGAPORE - International Plaza in Tanjong Pagar has been relaunched for sale by public tender at the same reserve price of $2.7 billion, after its first tender closed in November last year with no bids.

The tender, which was relaunched on Monday (April 4) afternoon, will close on April 29 at 3pm.

Potentially Singapore's largest collective sale deal in terms of number of units and value, the reserve price of the 50-storey commercial and residential block works out to a land rate of $2,448 per square foot per plot ratio (psf ppr) including differential premium and lease upgrading premium.

The biggest collective sale here in dollar terms to date is the $1.34 billion Farrer Court deal sealed in 2007.

Ms Swee Shou Fern, executive director of investment advisory at Edmund Tie, the marketing agent, said: "We are optimistic of the relaunch of International Plaza on the back of the expected recovery in the downtown commercial sector that is benefiting from the easing of Covid-19 measures, the rejuvenation of the Central Business District, and growing demand from family offices and regional high-net worth individuals." 

She cited expectations that investment activity will hold up this year, fuelled by Singapore's recovery and improving business sentiment.

Singapore's commercial sector has seen transactions of more than $6 billion in the first quarter of this year, she added.

These included the proposed acquisition of Jem at $2.08 billion, as well as the collective sale of Tanglin Shopping Centre at $868 million, and Cross Street Exchange at $810.8 million.

International Plaza - one of Singapore's biggest integrated projects - was built in the 1970s. It comprises 209 apartments, 559 offices, 192 strata shops, a carpark and a pool.

Edmund Tie did not disclose the amounts the owners stand to get.

The property's commercial zoning also means that there is no additional buyer's stamp duty payable and no restriction on foreign ownership.

In October last year, International Plaza's outline application for redevelopment into a 280m-high, 62-storey project with a 24.05 plot ratio under the Central Business District Incentive Scheme was rejected.

In rejecting the proposal, the Urban Redevelopment Authority (URA) said that the property "currently has a good mix of uses, ranging from residences to retail, food and beverage, and personal services, in addition to offices".

Furthermore, the building intensity of the existing development, at 19.24 gross plot ratio, is substantial and considerably higher than the surrounding developments in Tanjong Pagar, such as Guoco Tower, Twenty Anson and Springleaf Tower, according to URA.

URA suggested alternative development options and issued planning guidelines.

"The project's residential quantum should at least match the existing residential quantum on site, at 30,361.52 sq m (excluding any bonus gross floor area). There will be no further increase in the office quantum, which will be capped at 87,861.96 sq m in the new project," URA said.

The project's overall height control remains at 250m.

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